The global asset and wealth management market is expected to register a CAGR of ~ 4% between 2019 and 2027. The global asset and wealth management market is projected to be driven by the rise in cross-border investment. Major players are focusing more on enhancing customer services to increase their market share.
The increasing adoption of robo-advisors to improve decision-making processes in the asset and wealth management industry is expected to drive market growth during the forecast period.
North America holds a substantial share of the asset and wealth management market, and is anticipated to dominate the asset and wealth management market during the forecast period, followed by Europe.
North America remains the leading region in the asset and wealth management market, with revenue in 2019 estimated at ~ US$ 2.4 Bn.
The asset and wealth management markets in the Middle East & Africa and South America are expected to experience moderate growth during the forecast period.
Asset and Wealth Management Market – Definition
The asset and wealth management market report provides analysis of the global asset and wealth management market for the period of 2017–2027, wherein, 2018 is the base year and 2019 to 2027 is the forecast period. Data for 2017 has been included as historical information.
The study on the asset and wealth management market would help clients in understanding the adoption analysis of asset and wealth management among different components, such as hardware, software, services, and also based on institutions.
Companies are offering asset and wealth management software to financial institutes. Companies focus on services to increase their share in the asset and wealth management Several companies provide hardware for solutions. Software is adopted in banks, broker dealers, and the specialty finance and wealth advisor sectors.
North America Asset and Wealth Management Market
North America is the technological hub for new technologies and innovation. Increasing demand for advisory services in North America provides the perfect base for new advances in the advisory and third-party financial services market. The adoption of robo-advisory services in North America increases the demand for asset and wealth management software in financial institutes to make the decision-making process easier in terms of organizational assets and wealth management.
Key Growth Drivers of the Asset and Wealth Management Market
Increase in customer services experiences– Companies are focusing on customer services that are built on three pillars – a consistent, quantitative advisory process; multi-channel integration; and personalization. These pillars help companies provide consistent advisory services, through a human or robo-advisor. Robo-advisors provide an optimal risk/return profile and allocate assets according to customer needs. Additionally, it also provides quantitative data analysis such as income, expenses, assets, and credits, and offers solutions accordingly.
Rise in cross-border investments- The growing use of technologies has enabled customers to facilitate cross-border investments and develop financial integration across global markets. Moreover, it helps asset and wealth management firms expand their markets.
Key Challenges Faced by Asset and Wealth Management Market Players
The growing asset and wealth management market has led to increasing legal counsel and governance rules and regulations, due to which, wealth managers are facing challenges in generating profits for their shareholders. For instance, under the fiduciary standard investment, advisors are bound to put their clients’ interests above their own.
Today, the millennial demo graph is more informed and fluctuates in terms of their investments. This creates difficulties for asset and wealth management firms in attracting customers and in providing enhanced customer service experiences.
Asset and Wealth Management Market – Competitive Landscape
In 2018, Morgan Stanley launched a new advisory platform named Wealthdesk. This is used to provide a one-destination platform for all advisors in financial planning and implementation tasks.
In 2019, Schroders and Citi together launched investIQ on Citi’s wealth platform in selected regions across the Middle East, Asia Pacific, and Europe.
